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In a year where many Canadians experienced a change in their financial situation, owing money on taxes is the last thing anyone needs. This makes the upcoming tax season stressful
if not downright terrifying.
Luckily, there are a myriad of federal and provincial credits and deductions that can help, and even get some extra cash in your pocket! Understanding which benefits you qualify for and how they can work for you is the key to getting the most out of your 2020 tax returns.
In partnership with H&R Block, here are some of the main credits and deductions you should keep an eye out for.
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This year was remarkable, as the Canada Revenue Agency (CRA) gave generous cash benefits of up to $2,000/month for 10 out of the 12 months. These cash benefits ensured that no Canadian is left behind. While these benefits increased the household disposable income by 10.8% in the second quarter, they also increased the 2020 taxable income. With higher income comes higher tax breaks. The CRA offers a basic personal amount (BPA) tax credit that ensures no Canadian is left behind.
What’s your 2020 taxable income?
The 2020 tax year is coming to an end. The minimum most Canadians earned this year is $24,400. Considering you earned $1,000 every month before and after the pandemic-induced lockdown, your working income was $5,000. The CRA gave up to $14,000 in Canada Emergency Response Benefit (CERB) between March and September. It also gave up to $5,400 Canada Recovery Benefit (CRB) between October and December. All these benefits add up